Blockchain in Retail Sector
Blockchain in Retail Sector
The expansion of the global Blockchain in the retail sector is driven by growth in demand for transparency related to product origin or processes and rise in need to diminish duplicate record keeping. Different factors that fuel the market growth include fast digitization and reduced total cost of ownership. However, factors such as lack of awareness related to Blockchain technology and an increase in fake products diminish the growth of the market.
One could almost forget about IoT and big data, with the way people are talking about blockchain technology these days. It has materialized as an exciting new development across the retail market. Looking at the retail industry, blockchain a paradigm can impact and disrupt a wide range of processes, from supply chain management activities up to the sales and after-sales services. This technology promise to facilitate goods distribution and improve user experience via interoperable services and data.
Simplifying communication between participants of the supply chain is one application. Inside, retailers can track their inventory in real time across the whole organization. The blockchain is distributed so it becomes significantly more flexible.
Blockchain prevents fraudulent goods from reaching the market. For example, one sneaker manufacturer explained how they are using blockchain and embedding smart tags in their footwear, allowing consumers to scan the smart tag with their smartphone and verify the sneakers are genuine.
With the help of Blockchain, A digital wallet can be created to centrally manage all loyalty points, reward cards, paper, and digital coupons. On top of that, blockchain offers real-time liquidity to buyers, making loyalty points more easily transferable between consumers and across retailers, brands, and stores.
Blockchain could be a fascinating method for helping retailers to oversee customer data with automatic compliance, as it empowers smart contracts that could be utilized to administer authorizations and access to consumer data.
For exchanging value or data, Blockchain empowers the use of cryptocurrencies.
These cryptocurrencies offer real advantages for both cross-border payments and micro-payments which can be an attractive proposition in a business context where you have a bulk number of international transactions. In addition, the end-to-end data trail provided by blockchain has the ability to ease the accounting and finance burdens on retail business in the areas of supply chain management and inventory keeping.
The use of so-called smart contracts which is enabled by blockchain can help to ease the hassles associated with collection and enforcement under traditional transaction structures.
This use case has variations in its application, but the main focus is to increase inward and outward transparency. Compelling statements derived from blockchain based financial records can make stakeholders sure that publications are true to the financial situation. By adapting the smart contract-based proof method the customers can ensure advertising claims, especially regarding ture ethics.
Blockchain as a distributed ledger it makes counterfeiting very hard. That’s part of the value of the technology which makes it attractive as a currency. Blockchain makes it possible for every legitimate touch in a supply chain (from a supplier to a manufacturer to a Shipper) to add a valid record to an item’s pedigree.